Social and Behavioral Sciences Commons^™

Foreign Direct Investment Flows To And From China, Rosalina Palanca-Tan

Economics Department Faculty Publications

The study traces the growth of direct foreign investment (DFI) inflows in China, and its distribution by sector, receiving regions and source countries. It also looks into the trends and patterns of Chinese outward direct investments. Direct investment flows into China are shown to be significantly affected by China's GDP growth rate, wage rate and exchange rate as well as the world's GDP growth rate. Policy factors play a catalytic role. China's overseas direct investment, likewise, appear to be influenced by home country (e.g.: Chinese government policies, Chinese competitive advantage) and host country (e.g., market considerations, cost and price factors, …